Mobile WiMAX - Uncovered Rob Inshaw GM Carrier Solutions, ANZ April, 2007 1 Nortel Confidential Information Agenda > Introduction > WiMAX Market Adoption & Drivers > Hyper connectivity and WiMAX > WiMAX reality > Devices and Network Status > Nortel Momentum > Summary 2 Nortel Confidential Information Strong WiMAX Ecosystem > Broad based Ecosystem > Global representation > Cost effective personal broadband for everyone > Eliminate CPE cost with embedded chipsets Source: WiMAX Forum > Standardised & Ubiquitous WiMAX is Key to Nortel’s Future Growth 3 Nortel Confidential Information WiMAX Technology WiMAX is the First 4G Mobile Broadband Access OFDM Freq • Next Generation of Air Interface IF • Spectrally Efficient SS SS S S S S IF FT • Immune to Interference S S S1 2S3 4 5 6 7 S N IF FT Guard Time Time N N N N 2N FT + + + + 1 2 3 4 Bandwidth BTS MIMO • Better Performance at cell edge MIMO Device • Doubles Capacity (2x2 MIMO) propagation channel • Reduced $/Mbyte • Small Antennas N N Tx and M Rx M Multiple Parallel Channels All IP, Flat, Architecture • All IP BTS ASN • Flat, Low cost, Architecture CSN GW • No Legacy Circuit BTS 4 Nortel Confidential Information 4G Technologies 20072008 2009 2010 2011 3GPP UMTS R8 LTE OFDM-MIMO 3GPP2 UMB OFDM-MIMO CDMA WiMAX Mobile WiMAX OFDM-MIMO OFDM + MIMO is basis of all 4G technologies 5 Nortel Confidential Information Affordable Mobile Broadband for Everyone > 2.5G 1xRTT / GPRS / EDGE • Introduced wireless data to the world > 3G EV-DO / HSDPA • Mobile broadband viable but with limited capacity > 4G WiMAX • The right cost structure Æ mobile broadband affordable for the masses 120% 4 3.5 Mbps 100% 3.5 100% 3 y s t 80% li 1/10th the costs of 3G es l ea 2.5 e r i R 9 3-4X Spectral efficiency a 60% W 2 d g n 9 Flat architecture - Less in a 1.5 40% 36% b 1 Mbps ak d Nodes to manage M a o 1 r 20% B $/ Mbps as % of GSM $/ Mbps as % 9% 0.5 <1% 0% 0 Throughput (Mbps) Typical GPRS UMTS HSDPA WiMAX Data source: Nortel <2003 2004 2006 2007+ $/Mbps Typical Throughput (DL) 6 Nortel Confidential Information WiMAX Global Market Adoption & Drivers 7 Nortel Confidential Information Market Segmentation and Sequencing WiMAX is the first 4G network – disruptive technology 2007 2008 2009 2010 Underserved Broadband 2G Leapfrog / 3G Migration • Fixed / Nomadic • Traditional operators compelled by 4G ecosystem • DSL Alternative, VOIP (↓ cost) • Real-time applications with seamless mobility and Attackers QoS • Aggressive market-makers; Quad-play services • Cable / Satellite / Alternative operators 4G • Domino effect unfolds with Rev C & LTE along with WiMAX • WiMAX will have ecosystem lead within 4G WiMAX Trials Rollout UMB Demos Trials Rollout LTE Standards Demos Trials Rollout 8 Nortel Confidential Information WiMAX Global Market Estimates WiMAX Spend Forecasts ($M) $18,000 +49% $16,000 $14,000 $12,000 +33% $10,000 1Q06 +86% $8,000 1Q07 $USM $6,000 $4,000 $2,000 $- Infonetics 2006-2009 Gartner 2005-2010 Nortel 2005-2010 WiMAX Market Opportunity continues to Grow 9 Nortel Confidential Information Broadband Penetration OECD broadband penetration and GDP per capita Broadband penetration 30 Broadband penetration (subscribers per 100 inhabitants, June 2006) 25 20 15 10 5 0 Denmark Source : Netherlands Iceland OECD Korea • Many OECD Scountrieswitzerland > 60% Penetration of Broadband per household Finland Broadband penetration (subscribers per 100 inhabitants, June 2006) Norway • 60% of High speed lines Ssubscribedweden in 2H 2006 in USA were mobile Canada United Kingdom Belgium United States Japan 10 Luxembourg Austria France Australia Germany Spain Huge Opportunity for Personal BroadbandItaly 15% OECD Avg. Portugal New Zealand Czech Republic Ireland Hungary Poland Turkey Slovak Republic Mexico Greece Nortel Confidential Information WiMAX Mega Trend Hyper connectivity 11 Nortel Confidential Information My New 3G Phone Jack of all trades Æ Master of None 12 Nortel Confidential Information Hyper-Connectivity > Change the Paradigm • One mobile does everything Æ All devices are always connected • Multitude of portable consumer electronic devices > Current Barriers to Hyper connectivity • Experience WiMAX will enable hyper •Cost connectivity • Billing & Provisioning 13 Nortel Confidential Information Mobile WiMAX Status Are we there yet? 14 Nortel Confidential Information WiMAX CPE & Device Acceleration 2007 2008 2009 Time to Market Market accelerant Market maturity • CPE • NBPC/UMPC embedded • CE/HH embedded PCMICA Card Wireless Router iPhone BlackBerry WiMAX/WiFi Embedded NB PC CF/SD/USB dongle PMP PSP PDA Indoor SS Outdoor SS WiMAX/WiFi Embedded UMPC iPod Mobile Phone Deliver Early MIMO Hyper-connectivity CE: CPE solutions LGE, Microsoft, HP, Apple, … 15 Nortel Confidential Information WiMAX Enabled Enterprise Solutions > Target Digital Home/SOHO/SMB • SIP for cost savings and internet access bundling • “landline” look and feel device > Enterprise (WiMAX) • Centrex services • Unified Communications > Home (WiMAX) WiFi Router W/ VoIP Outdoors • SIP and internet access • SIP + home internet gateway • SIP + WiFi Router IP PBX > WiMAX-enabled key system (WiMAX) Key System • IP enterprise communication solution • Digital hybrid key system 16 Nortel Confidential Information Network Status – Trials Underway Commercially Deployable 2H 2007 17 Nortel Confidential Information Nortel WiMAX Momentum M-Taiwan NTU Announced trial / Win • 1st WiMAX Networks in Canada, Greece, Netherlands and Taiwan • 1st End to End multi-vendor MIMO “over the air” call st 18 • World’s 1 demonstration of Collaborative MIMO Nortel Confidential Information Summary > Mobile WiMAX is the start of 4G > WiMAX continues to build strong momentum Globally > Hyper connectivity is a key inflection point in personal broadband. > It is not just about mobility but Consumer Electronics > Trials are underway with deployment in 2H 2007 > Nortel is building global momentum with WiMAX 19 Nortel Confidential Information Thank you 20 Nortel Confidential Information Communication Enabled Applications > 1.3M text and voice messages are sent via Xbox Live every day totaling half a billion messages per year > 100M Mobile VoIP users by 2011 > Wireless enabled mobile entertainment devices will make up 36% of VoIP devices sold in 2011 + Business Consumer 21 Packet Voice from Non Traditional Sources Nortel Confidential Information.